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One of the basic relationships in bond priceing is that, other things held constant, for a given change in the required rate of return (i.e., the yield to maturity), the __________the time to maturity, the __________ the change in price.

User Salsbury
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1 Answer

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Answer:

Longer, larger

Step-by-step explanation:

bond is a kind or form of loan- debt security obligating a borrower to pay a lender principal and interest.

A basic relationships in bond priceing is that, other things held constant, for a given change in the required rate of return (i.e., the yield to maturity), the longer the time to maturity, the larger the change in price. Bond prices

are determined and change in them occurs due to Supply and Demand.

To Investor, the higher the price, more tempting it is to sell.

User Cleber Goncalves
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